Building Industry Faces Tough One

January 12, 1991|By JEFFREY LOUDY Staff Writer

The construction industry faces its toughest battle this year, as the country and the Peninsula struggle with a recession, according to Robert L. Williams, who is being installed tonight as president of the Peninsula Housing and Builders Association.

In the last recession during the early 1980s, the construction industry was held down by high inflation, he said. This time around, inflation is about half what it was in the early '80s, but ``at that time we weren't facing war and we didn't have the wetlands legislation and the Chesapeake Bay Protection Act,'' he said.

Tighter federal regulations have caused lenders to clamp down on construction financing, Williams said, tying the hands of builders and developers.

``I think the '80s are gone,'' Williams said.

During the 1980s, the Peninsula real estate and construction market soared, then staggered as the supply of homes outgrew demand. The situation is changing, Williams said, and he foresees growth through the 1990s, but at a steady pace.

``We're going to still have good years,'' he said. ``It will be steady. It's not going to be gigantic growth.''

Williams also said builders and developers need to become more politically involved, to stay on top of things.

``We're going to have to learn to deal with this change,'' he said.

He advised his colleagues to be cautious because ``it's a recession, let's be honest about it,'' but not to be so cautious that they freeze up.

``You've got to take advantage of the opportunities as they come up,'' he said. ``The housing industry won't fold. It's always been here, it always will be.''

Williams has tremendous confidence in the industry. He has to. In August, in the middle of the building slump, he quit his job as general superintendent in charge of construction with another builder and went into business for himself.

``I figure if I can make it in this time and be aggressive, the rest is easy,'' he said.

He has been in the construction industry for 13 years, starting out as a warehouse foreman after nine years with the city of Hampton's department of recreation.

In addition to Williams, the Peninsula Housing and Builders Association officers taking their positions tonight include Donald Hatchett, of Hatchett Home Improvement, who will serve as first vice president; Bobby Powell, of Powell & Associates, who will be second vice president; Steve Nunn, of Pella Virginia, who will be associate vice president; Jack Keller, of Noland Co., secretary; Roger McLellon, of C.R. McLellon Builder, treasurer.

In addition to the Home Expo and Parade of Homes - major events on the builders' calendars -the group is planning to introduce a program that would provide on-the-job training in construction trades for high school dropouts.

The program would benefit builders by ensuring a trained work force at the same time providing gainful employment for the dropouts, Williams said.

The association hopes to get state funding for the program in June.

Also this spring, the builders will introduce their first new homes guide, which Williams describes as a catalog of builders and newly constructed houses on the market.

The Peninsula builders association represents about 500 member firms consisting of about 8,000 individuals.